SB 525, passed in 2023, established a new minimum wage for California’s healthcare workers. The legislation aimed to enhance working conditions in hospitals, clinics, community health centers, and other medical settings.
Although it was scheduled to go into effect in June 2024, it was postponed until October 16, 2024 due to state budgetary adjustments.
How much will health sector workers earn in 2025?
From 2025, the minimum wage will vary according to the type of employer. Here are the main levels set:
Large hospitals and nonprofit integrated health systems:$23 per hour from June 1, 2024, rising to $24 in 2025 and $25 in 2026.
Rural hospitals and community clinics:$18 per hour from October 2024, with annual increases to $25 in 2033.
Healthcare facilities with fewer than 10,000 employees:$21 per hour from 2024, rising to $23 in 2026 and $25 in 2028.
These wage increases are intended to reduce employee turnover and improve service quality in California’s health care system.
Who does this new regulation apply to?
SB 525 applies to a wide range of health care workers, including:
Nurses
Laboratory technicians
Cleaning and maintenance staff in hospitals
Receptionists and administrative staff in clinics
Healthcare workers in nursing homes
It makes no difference whether the worker is hired directly or through an agency; if they provide services at a health center covered by the law, they are entitled to the new minimum wage.
What impact does this measure have on the health system?
The increase in the minimum wage in the health sector has several goals:
Improve staff retention in a high-turnover sector.
Reduce the shortage of skilled workers in rural and community clinics.
Improving the quality of care by offering fairer working conditions.
While some hospitals are concerned about the financial impact, the law allows for staggered and exceptions to ease the transition.
What should employers do in 2025?
Healthcare employers in California must:
Review your classification under SB 525.
Update your payroll systems to comply with the new minimums.
Inform your employees about their pay rights.
Noncompliance can result in legal penalties and labor lawsuits, so it’s critical to stay current.
The California minimum wage for healthcare workers in 2025 represents a significant step toward labor equity in one of the state’s most important sectors. With wages reaching up to $24 per hour this year, SB 525 establishes a precedent for protecting labor rights in the healthcare industry.
